3C Merges with Datalec to Create Liquid-Cooling and Data Centre Services Platform
The merger brings together deep expertise in liquid cooling, mechanical and electrical (M&E) engineering, original design manufacturing (ODM), connectivity and facilities management (FM), enabling data centre operators worldwide to rely on one partner from design through operations.
LONDON (ANTARA/PRNewswire) — 3C, a data centre infrastructure services company focused on liquid cooling and founded by former CoolIT Systems chief executive Steve Walton, has joined forces with London-based data centre engineering specialist Datalec Precision Installations, founded in 2012, to create 3C Datalec. The new platform designs, builds and operates critical infrastructure for AI data centres.
Backed by new investment from Longbow Capital, S2G Investments, Apogem Capital and QIC, 3C Datalec will accelerate its international growth, invest in skilled staff and expand its technical capabilities as demand for AI rises. Over the next 12 months, the company will recruit 200 engineers and open new facilities in Warsaw, Poland; Calgary, Alberta; and Austin, Texas.
The combined business has around 1,000 team members and forecasts revenue of more than US$400 million in 2026, with offices and manufacturing facilities across Europe, the Middle East, Asia-Pacific and North America. It works with four of the five largest hyperscale service providers and more than 25 colocation providers, as well as neocloud and enterprise customers. It has active projects in 16 countries, representing hundreds of megawatts (MW) in total.
As AI workloads increase computing density, power requirements and thermal complexity, 3C Datalec is organising its capabilities around three pillars:
Create — design and engineering.
Build — liquid cooling, mechanical and electrical (M&E) engineering, ODM manufacturing and connectivity installation.
Care — commissioning, operations, maintenance and facilities management.
“Rack density has outgrown air cooling, and liquid cooling is no longer optional,” said Steve Walton, chief executive of 3C Datalec. “At CoolIT, we spent years preparing for this moment and became a global leader in liquid cooling. The hard part now is making cooling, power, construction and operations work as one system, while operating at scale. We are bringing our liquid-cooling expertise together with Datalec’s engineering, manufacturing and facilities-management capabilities, giving customers one partner from design through operations.”
The industry faces a shortage of skilled data centre engineers, so 3C Datalec trains its own. Team members can access apprenticeships, technical training and career development through the company’s internal university, and will share in the company’s success through its Leadership & Employee Equity Programme (LEEP). The aim is to develop a new generation of liquid-cooling and critical-infrastructure specialists.
“Datalec has always been a people-first company. We have grown by building strong relationships, meeting our customers’ needs and creating a culture people want to be part of,” said Danny Keeper, Datalec group director and co-founder. “Finding a partner like 3C that genuinely shares those values was essential to us. This partnership allows us to grow globally while protecting the culture and identity that have been at the heart of Datalec since day one.”
“For more than a decade, our customers have entrusted Datalec with their most critical sites, and we have earned that trust on every project,” added Stuart Richmond, Datalec group director and co-founder. “Joining 3C means we can now offer liquid-cooling services on a global scale. But our commitment has not changed: the same teams, the same contacts and the same focus on ensuring every customer gets the best results.”
“AI is changing data centre infrastructure requirements, and liquid cooling is at the centre of that shift,” said Matthew Cunning, a director at Longbow Capital. “Steve helped build a company that became a leader in liquid cooling, while Datalec brings a proven project-delivery business and a loyal customer base. We are backing 3C Datalec to become the partner of choice for AI-ready infrastructure.”
“The next phase of data centre investment will be shaped by the development of new facilities and the need to upgrade existing sites for higher-density workloads,” said Bala Nagarajan, managing director at S2G Investments. “Datalec has built deep trust in delivering complex projects in these environments, and 3C brings the experience and capabilities to expand those relationships into a broader range of services across the facility lifecycle.”
Datalec’s headquarters will remain in London, and its founding leadership team will continue in executive roles within the enlarged group. Financial details of the transaction were not disclosed.
About 3C Datalec
3C Datalec designs, builds and operates critical infrastructure for AI and high-density data centres. Established in 2026 through the merger of 3C, founded by former CoolIT Systems chief executive Steve Walton, and London-based Datalec Precision Installations, founded in 2012, the company brings together liquid cooling, mechanical and electrical (M&E) engineering, ODM manufacturing, connectivity and facilities management, under its Create • Build • Care model. With around 1,000 team members and active projects in 16 countries, 3C Datalec serves hyperscale and colocation providers, neoclouds and enterprises across Europe, the Middle East, Asia-Pacific and North America. It is backed by Longbow Capital, S2G Investments, Apogem Capital and QIC. For more information, visit www.datalecltd.com.
About S2G Investments
S2G Investments is a multi-asset investment firm focused on building resilient, market-shaping businesses in the food and agriculture, energy and oceans sectors. It provides capital and value-added resources to companies commercialising solutions designed to improve efficiency, resilience and long-term value across industries that underpin the global economy. Through purpose-built financing and a systems-oriented investment approach, S2G aims to drive measurable, sustainable outcomes through tailored solutions spanning late-stage venture, growth equity, structured finance and infrastructure. For more information, visit s2ginvestments.com or contact the firm on LinkedIn.
About Longbow Capital
Longbow Capital is a Canadian investment manager focused on the energy, power, industrial and technology sectors. Since its founding in 1997, Longbow has been a long-term strategic partner and active, effective shareholder in more than 150 high-growth investments. Its investment record, extensive network and deep understanding of how energy systems work enable it to identify, assess and invest in opportunities arising from major ongoing social and economic shifts — decarbonisation, digital infrastructure development and deglobalisation — as technology-driven change reshapes markets and creates promising investment opportunities.
About Apogem Capital
Apogem Capital is a leading private markets investor with 35 years of experience in private credit and private equity in North America. As at 30 June 2026, it managed approximately US$44 billion in assets.¹ Apogem offers a comprehensive range of solutions, including direct lending, private equity funds and co-investments, GP-led transactions, secondary transactions in LP interests, GP stakes and private real assets.
With a team of more than 250 professionals, including over 120 investment professionals, Apogem combines deep domain expertise with the stability and long-term perspective of its parent company, New York Life Insurance Company. Apogem Capital is a wholly owned subsidiary of New York Life through New York Life Investment Management Holdings, LLC. For more information, visit apogemcapital.com.
¹ Assets under management (AUM) are unaudited estimates as at 30 June 2026 and include non-discretionary assets and assets for which investment advisory services are provided by more than one adviser.